Whenever we see a Ferrari in movies or on track, we dream of owning one. But how practical is it? To some people, these cars are only used in movies. They are like fantasies. There are others, on the other hand, who would put all their money together to own one. So what compels one to buy a seven figure luxury car?
Image and prestige
People love the intangible value of status. It’s the feeling of showing off to other people and making them envy. Some people just want the latest and greatest of everyday. The feeling of owning something special, which many people don’t have is the driving force behind buying luxury cars. Some cars, like the car driven by the F1 champion, are like antiques. People who love collectible would like to have it. It is the story behind it that attracts people.
More luxury, more safety
Who doesn’t like luxury lifestyle? People enjoy the feeling of luxury on their move. Expensive cars are also safer. Modern cars have many new technologies which are very helpful in keeping you and your vehicle safe. Auto drive, keyless cars, auto engine off, etc. have been some of the features of modern cars. People who are fond of gadgets and technologies would want to own a ‘James Bond’ style car.
Most people don’t have the money to afford such car. So, they use their credit cards to pay. This is one of the reasons for the enormous debt that Americans are having. They spend more than they can afford to.
People are going towards intangible benefits, like ‘feeling special’. Buying luxury car is considered as irrational buying behavior by many people. You can get the functional aspect of the car in other less expensive brands as well. The maintenance cost of a luxury car is huge. The tax is high, insurance is high and you won’t get the parts easily if something goes wrong.
People have self esteem needs and luxury cars provide just that. Those people who have reached the self-esteem stage of their life and afford to buy such car, can buy one. There is nothing wrong in it. It gives you a sense of achievement and more acceptance in society. But if you don’t have the money to buy it and you are living on credit, and still on stage 3 or 4 of Maslow’s Hierarchy of needs, then it’s not worth buying a luxury car.